OIL: Oil End of Day Summary: Crude Rises on Storm Francine Fears

WTI is set for gains today, boosted by concerns that Tropical Storm Francine could impact USGC output.

• WTI OCT 24 up 1.7% at 68.83$/bbl
• Tropical Storm Francine’s path threatens to impact around 1.3m b/d of oil output, according to Bloomberg.
• Exxon, Chevron, and Shell have closed assets and evacuated staff from offshore platforms in the Gulf of Mexico.
• Shell began evacuating non-essential personnel from its Gulf of Mexico Enchilada/Salsa and Auger, also pausing some drilling at Perdido and whale assets.
• The US Coast Guard has suspended inbound boardings for the Ports of Houston, Galveston, and Freeport. Port Of Corpus Christi increased Hurricane Readiness Status to level 3 and voluntary evacuations are taking place at Port Fourchon, Louisiana.
• US DoE announces contracts awarded for acquisition of 3.4m bbl for SPR.
• Iraq sets October Basrah Medium crude OSPs to Asia at Oman/Dubai average minus $0.50/BBL – SOMO
• Crude held in floating storage stationary for at least seven days slipped to 60.25m bbl as of Sept. 6 , Vortexa said.
• Nigeria raised its OSPs for Qua Iboe and Bonny Light crude in September to 5-month highs.
• Morgan Stanley revised down its Q4 2024 Brent forecast by $5/b to $75/b.
• Oil prices are still subject to downside into 2025-2026 due to a surplus market according Goldman Sachs.
• BoA cut its Brent crude oil forecast to $75/bbl in ’25 on slower economic growth and softer oil demand.
• The oil market will be well supplied for at least the next two years as fading gasoline consumption in China is adding to concerns about tepid oil demand vs supply, Vitol said.
• Rystad Energy revised up its oil production forecast for the 2024 US Permian Basin output growth to 333k b/d.